Question 17Swifty Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid.1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500.2. The company’s funding policy requires a contribution to the pension trustee amounting to $144,729 for 2020.3. As of January 1, 2020, the company had a projected benefit obligation of $908,100, an accumulated benefit obligation of $802,100, and a debit balance of $400,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,200 at the beginning of the year. The actual and expected return on plan assets was $54,100. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid.4. Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020. (c) Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Swifty Company for the year 2020.Swifty CompanyIncome Statement (Partial)choose the accounting period select an income statement item select an income statement item $enter a dollar amount Swifty CompanyComprehensive Income Statementchoose the accounting period select a comprehensive income item $XXXXselect an opening section name select a comprehensive income item enter a dollar amountselect a closing name for this statement $XXXXSwifty CompanyBalance Sheet (Partial)choose the accounting period select an opening name for section one select a balance sheet item $enter a dollar amount select an opening name for section two select a balance sheet item $enter a dollar amount

Pension expense is the amount charged to expense by a company in respect to its employee pension…

Answered: Company sponsors a defined benefit…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

(c)

Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Swifty Company for the year 2020.

Swifty Company Income Statement (Partial) choose the accounting period
select an income statement item
select an income statement item		$enter a dollar amount

Swifty Company Comprehensive Income Statement choose the accounting period
select a comprehensive income item		$XXXX
select an opening section name
select a comprehensive income item		enter a dollar amount
select a closing name for this statement		$XXXX

Swifty Company Balance Sheet (Partial) choose the accounting period
select an opening name for section one
select a balance sheet item			$enter a dollar amount
select an opening name for section two
select a balance sheet item			$enter a dollar amount

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Employee Compensations and Benefits

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

1.		The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500.
2.		The company’s funding policy requires a contribution to the pension trustee amounting to $144,729 for 2020.
3.		As of January 1, 2020, the company had a projected benefit obligation of $908,100, an accumulated benefit obligation of $802,100, and a debit balance of $400,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,200 at the beginning of the year. The actual and expected return on plan assets was $54,100. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid.
4.		Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020.